Pressure on IFM to disclose Himbury's pay packet

IFM Investors chairman Greg Combet is under pressure from member funds to be more transparent about what IFM's executives are paid as its profits soar, with one British tabloid newspaper attacking chief executive Brett Himbury's "jet-set" lifestyle.

IFM is owned by 27 industry superannuation funds and its biggest members, including Sunsuper and Australian Super, disclose how much they pay their executives and directors in their annual reports or in specific remuneration documents.

IFM Investors does not disclose how much CEO Brett Himbury is paid. AFR

However, IFM does not disclose how much it pays individual executives or directors, or what their long-term incentive packages are.

The annual report of IFM's holding company, Industry Super Holdings, which is filed with the Australian Securities and Investments Commission, states only that key management personnel were paid a combined total of $3.59 million for the 12 months to June 2018.

The holding company annual report does not reveal details of incentive schemes but says salaries include "special incentive scheme accruals" that are calculated as a percentage of the performance fees payable and management fees, and are subject to "the judgement and estimates used in determining performance fees".

IFM declined to comment on questions from The Australian Financial Review on what Mr Himbury's salary and bonuses were, and why it did not report them publicly.

IFM member funds also declined to comment publicly on IFM's remuneration practices, but privately say it is an issue that the group needs to manage.

IFM owns a 35 per cent stake in Stansted Airport through its investment in Manchester Airports Group.

IFM reported a $98.4 million net profit in 2017-18 compared with a $24.3 million profit a year earlier and has been performing so well it has returned tens of millions of dollars of management fees to investors.

ISS Governance's head of Australia and New Zealand research, Vasili Kolesnikoff, said that since IFM invests money on behalf of industry funds, "appropriate remuneration disclosure" should be demanded.

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Mr Kolesnikoff said industry funds did not disclose their remuneration and bonuses to the same extent as listed fund managers, but that disclosure should be required due to expectations of transparency and good governance for members.

IFM's remuneration arrangements have come under more scrutiny after witness statements made in a sexual harassment case brought by former IFM analyst Nathalie Abildgaard in London alleged executives could receive bonuses worth tens of millions of dollars.

Ms Abildgaard's witness statement alleged Christian Seymour, the head of IFM's European infrastructure business, stood to receive so-called carried interest payments from a fund that held investments arranged by IFM.

The statement said that executive director Frederic Michel-Verdier, who is alleged to have harassed Ms Abildgaard, could receive up to £20 million in interest payments. IFM settled the case, paying Ms Abildgaard $493,000.